1.Assuming all startups funded by Wefunder Advisors were in the portfolio of one fund with equal $25K investments, comparison data by Cambridge Associates.
2.Net IRR after fees and carry. Marked as of Dec 2018, to latest valuation paid by an investor. Unaudited. Unrealized. Learn about IRR
3.Source: Cambridge Associates. Note that unrealized IRR often goes down over time. The final realized return will likely be lower.
4.Past performance is not indicative of future returns. Read Other Disclosures

2016-2017 Regulation Crowdfunding

In 2016, in addition to managing venture capital funds, we started a Reg CF funding portal. It's too early to calculate IRR, but here are first results for Wefunder Portal as of May 2018.

Applying our Expertise as Online VC's to Crowdfunding

Regulation Crowdfunding has flaws. Rarely does an experienced lead investor set terms, do a deep dive due diligence, obtain voting rights, or advocate on behalf of the crowd. Since the average investment is under $300, not many do the work.

We've created Funds to fix these flaws, to motivate domain experts to do that work.

How it Works

A venture capital fund where you can be a partner

1

Choose a fund to follow

What issues you care about? What industry are you an expert in?

2

Help out where you can

You can help scout startups, vet companies, do technical due diligence, or mentor startup founders with office hours.

3

Earn a 'promotion' to partner

Each fund is like a small decentralized VC firm. Experts "on the ground" can become a part-time partner, with a few hours a week.

4

Get paid with carried interest

Partners are paid with 15% carried interest, divided based on their contribution. You can make a lot of money if the startups succeed.

5

See report cards & decide to invest

When the fund decides to invest, you often have the option of investing as little as $100 personally. View the due diligence contributed by the team and decide.

Deal Memo

The team completes a deal memo while conducting due diligence. You can choose to invest more directly.

Annual Portfolio Report

Most portfolio companies are required by law to do an Annual Report by April 30th, which includes financials. Here's a sample.

Annual IRR Estimate

By May 30th of each year, Wefunder recalculates realized and unrealized IRR for each fund you invest in.

MoonShot Fund

The MoonShot Fund invests in startups tackling the hard problems that – if they succeed in reaching their vision – would bring us closer to the Jetson’s future promised in the 1960’s.

We will make high-risk investments that have a slim chance of reaching their ambitions. However, we aim to back companies that can be acquired for their technical talent or patent portfolio if they fail, mitigating losses.

Start a Fund

Invest with a Team You Pick

Fund Name

Tagline

Investing Focus & Thesis

We'll get back to you within 48 hours

Start a Fund

You commit the capital. We do the work.

Our Criteria

We approve funds based on odds of success. We take into account our deal flow, our network of domain experts, and demand among investors.

If a sponsor invests $250K+ with a well-crafted investing focus, we'll very likely accept the job.

FAQ

Wefunder recruits fund managers to run funds. Fund managers are the most experienced and credible angel investors on our platform.

Can anyone join a fund?

Yes! Our goal is to democratize venture capital. We don't believe the best investing decisions in early-stage startups are made by MBA's in suits on Sand Hill Road. They are made by operators on the ground within each industry.

What are the benefits of being a member?

You get inside access to see how experts vet startups. You can view the deal memo and decide if you want to invest personally yourself. We expect this is a good way for new investors to learn the ropes. It's also a fun way to learn about an industry or meet interesting people.

If you decide to get more involved, you can get promoted to a partner, and earn carried interest.

How do I become a partner?

Fund managers can promote members to partners. Each fund has their own criteria. Generally, the best way to become a partner is to establish a reputation as a helpful human. Help find, vet, or mentor startups.

What are the benefits of being a partner?

You earn carried interest. Each fund divides 15% carry between partners, based on their contributions on that deal. This is how VC's are paid. You are a part-time VC.

How does carried interest work?

Let's say the fund invest $100,000 in TheNextUber at a $10M valuation. Six years later, TheNextUber files for an IPO, and that stock is sold for $50.1M. The fund partners divide 15% carry. That is $7.5 million ($50,100,000 proceeds - 100,000 initial investment returned to investors * 15% carried interest).

How is the carried interest divided among partners?

The fund managers decide how to allocate carried interest. It varies from fund to fund. Generally, most funds give the largest chunk (up to 10% carry on a deal) to those who find startups and act as a lead investor. A smaller portion (perhaps 1% on a deal) is allocated to those who vet or mentor startups.

What is the time commitment?

It can be as little or as much as you want. There is no commitment. Stop anytime.

We expect that the best members are often very busy with their full-time jobs or running their own startups. If you have a couple hours per month to do one single useful task (i.e., holding office hours to mentor a founder or vetting a startup), that is very helpful.

How does this work legally?

There is no paperwork for members. You are volunteering your time.

If you decide to earn carried interest as a partner, Wefunder Advisors must hire you as an independent contractor. You then have a duty to disclose any conflicts of interest, and to act in the best interests of the limited partners in the fund.

Can I invest in the fund as a limited partner?

Under current federal law, only accredited investors (those earning $200k+ per year or over $1m in assets) may invest in Funds.

Disclosures.
Past performance is not indicative of future returns. Examples of previous Wefunder investments are for illustrative purposes only. Full list available upon request. There is no guarantee that any fund will achieve the same exposure to, or quality of, startups held by any existing fund. Any investment involves a high degree of risk and is suitable only for sophisticated and qualified accredited investors. We do not provide investment advice to investors and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off Wefunder.
This material is provided for informational purposes only and shall not constitute an offer for any security.

249 startups have raised $83,107,637 on Wefunder

Wefunder supports three different federal laws that allow startups to raise money legally. To comply with the law, Wefunder Advisors LLC and Wefunder Portal LLC (both owned by Wefunder Inc) also list startups depending on the regulation used.

Legal May 16th 2016

Regulation Crowdfunding

Wefunder Portal LLC

$53,129,230

for 164 startups

Legal Now

Regulation D

Wefunder Advisors LLC

$25,421,170

for 92 startups

Rare

Regulation A+

Wefunder Inc

$4,557,237

for 1 startup

We are the largest funding portal for Regulation Crowdfunding.

Some fine print: 1) These numbers include startups currently live on Wefunder if they pass their minimum target. 2) Some startups use two different laws at the same time (i.e., Regulation D and Regulation Crowdfunding).

Wefunder Inc. runs wefunder.com and is the parent company of Wefunder Advisors LLC and Wefunder Portal LLC. Wefunder Advisors is an exempt reporting adviser that advises SPVs used in Reg D offerings. Wefunder Portal is a funding portal (CRD #283503) that operates sections of wefunder.com where some Reg Crowdfunding offerings are made.
Wefunder, Inc. operates sections of wefunder.com where some Reg A offerings are made. Wefunder, Inc. is not regulated as either a broker-dealer or funding portal and is not a member of FINRA.
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